Internet fraud

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Internet fraud is a type of fraud which makes use of the Internet. This type of fraud varies greatly and appears in many forms. It ranges from E-mail spam to online scams. Internet fraud can occur even if partly based on the use of internet services and is mostly or completely based on the use of the internet.

Counterfeit postal money orders[edit]

According to the FBI, on April 26, 2005 Tom Zeller Jr. wrote an article in The New York Times[1] regarding a surge in the quantity and quality of the forging of U.S. postal money orders, and its use to commit online fraud.

In the United States of America, the penalty for making or using counterfeit postal money orders is up to ten years in jail and/or a $25,000 fine.[2]

Online automotive fraud[edit]

A fraudster posts a nonexistent vehicle for sale to a website, typically a luxury or sports car, advertised for well below its market value. The details of the vehicle, including photos and description, are typically lifted from sites such as Craigslist, AutoTrader.com and Cars.com. An interested buyer, hopeful for a bargain, emails the fraudster, who responds saying the car is still available but is located overseas. Or, the scammer will say that he is out of the country but the car is a shipping company. The scam artist then instructs the victim to send a deposit or full payment via wire transfer to initiate the "shipping" process. To make the transaction seem more legitimate, the fraudster will ask the buyer to send money to a fake agent of a third party that claims to provide purchase protection. The unwitting victims wire the funds and subsequently discover they have been scammed. In response, auto sales websites often post warnings to buyers, for example, those on Craigslist which warn not to accept offers in which vehicles are shipped, where funds are paid using Western Union or wire, etcetera, requesting those postings to be flagged as abuse.[3]

Charity fraud[edit]

The scammer poses as a charitable organization soliciting donations to help the victims of a natural disaster, terrorist attack (such as the 9/11 attacks), regional conflict, or epidemic. Hurricane Katrina and the 2004 tsunami were popular targets of scammers perpetrating charity scams; other more timeless scam charities purport to be raising money for cancer, AIDS or Ebola virus research, children's orphanages (the scammer pretends to work for the orphanage or a non-profit associated with it), or impersonates charities such as the Red Cross or United Way. The scammer asks for donations, often linking to online news articles to strengthen their story of a funds drive. The scammer's victims are charitable people who believe they are helping a worthy cause and expect nothing in return. Once sent, the money is gone and the scammer often disappears, though many attempts to keep the scam going by asking for a series of payments. The victim may sometimes find themselves in legal trouble after deducting their supposed donations from their income taxes. United States tax law states that charitable donations are only deductible if made to a qualified non-profit organization.[4] The scammer may tell the victim their donation is deductible and provide all necessary proof of donation, but the information provided by the scammer is fictional, and if audited, the victim faces stiff penalties as a result of the fraud. Though these scams have some of the highest success rates especially following a major disaster and are employed by scammers all over the world, the average loss per victim is less than other fraud schemes. This is because, unlike scams involving a largely expected payoff, the victim is far less likely to borrow money to donate or donate more than they can spare.[5]

Internet ticket fraud[edit]

A variation of Internet marketing fraud offers tickets to sought-after events such as concerts, shows, and sports events. The tickets are fake or are never delivered. The proliferation of online ticket agencies and the existence of experienced and dishonest ticket resellers has fueled this kind of fraud. Many such scams are run by British ticket touts, though they may base their operations in other countries.[6]

A prime example was the global 2008 Beijing Olympic Games ticket fraud run by US-registered Xclusive Leisure and Hospitality, sold through a professionally designed website, www.beijingticketing.com, with the name "Beijing 2008 Ticketing".[7] On 4 August it was reported that more than A$50 million worth of fake tickets had been sold through the website.[8] On 6 August it was reported that the person behind the scam, which was wholly based outside China, was a British ticket tout, Terance Shepherd.[9]

Gambling Fraud[edit]

The internet gambling has become a 15 $ Million industry, with this the fraud have reached another level altogether. Every online casino needs a operation license to conduct their business. The licensing authorities do have rules which need to be followed failing which the operators may lose their license or even face imprisonment. Also online casinos have become an extremely lucrative as well competitive industry with the operators introducing new promotions on a daily basis. Promotional activities include attractive bonuses, prize moneys, jackpots and other irresistible offers aimed at making your online casino experience as memorable as possible. Important is a secure software like a 128-bit SSL (Secure Socket Layer) encryption.[10]

See also[edit]

References[edit]

  1. ^ Tom Zeller Jr (April 26, 2005). "A Common Currency for Online Fraud: Forgers of U.S. Postal Money Orders Grow". New York Times. 
  2. ^ "CyberCops.com - Counterfeit Postal Money Orders". www.cybercops.com. Retrieved 23 May 2017. 
  3. ^ "craigslist - autos". www.craigslist.org. Retrieved 23 May 2017. 
  4. ^ "Charitable Contributions: For use in preparing 2016 Returns" (PDF). 
  5. ^ "Scam Watch - Nigerian Scams". Scam Watch - Australian Government. 12 May 2016. 
  6. ^ Jamie Doward (2008-03-09). "How boom in rogue ticket websites fleeces Britons". The Observer. London. Retrieved 9 March 2008. 
  7. ^ "USOC and IOC file lawsuit against fraudulent ticket seller". Sports City. Retrieved 1 August 2008. 
  8. ^ Jacquelin Magnay (4 August 2008). "Ticket swindle leaves trail of losers". The Sydney Morning Herald. 
  9. ^ Kelly Burke (6 August 2008). "British fraud ran Beijing ticket scam". The Sydney Morning Herald. 
  10. ^ "Casino scams – how to avoid black sheeps". Retrieved 2017-10-09. 

External links[edit]

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